It is not surprising that a large number of exchanges have emerged intending to provide consumers with a lot of investing options and tools with the expansion the crypto market has experienced over the previous ten years. However, figuring out which services are the most reliable and valuable may be difficult. Thus, I would like to clarify this situation by outlining How this service fits into this industry in my DigiFinex review.
Popular exchanges like Coinbase, Kraken, and Binance are usually the first choice for many newbies. Although these are undoubtedly excellent decisions, other platforms such as the DigiFinex exchange also have a huge impact on this market should also be recognized.
DigiFinex is competing like many of its rivals to provide a full selection of tools for its user base, which includes growing utilities, wealth management services, spot and derivative trades, and even a cryptocurrency card. It looks like it could be one of this industry’s leading platforms. However, let’s examine these components more closely to see if it is possible.
What is DigiFinex?
Basically, it’s a cryptocurrency exchange with a range of trading features and tools. They consist of futures, ETF, spot, margin, and margined trading. However, the DigiFinex exchange aims to accomplish much more than just this.
You will find that the platform offers cloud mining options, and support for starting projects, loans and game/activity that can result in bonuses. Overall, it appears to be a complete crypto ecosystem. Over many years, the plan of developing an extensive toolkit has been increasingly popular in this field, and many businesses are competing for customers by providing as many features as possible.
The primary goal is to create a networked project that guarantees users never have to move off the platform to complete tasks, offering convenience to customers and boosting the business activity of the platform.
It is a centralized business, often known as CeFi, which means that it has control over customers’ funds. This means that even while it uses cryptocurrency and blockchain technology to function, its fundamental structure isn’t all that different from that of a traditional financial organization or business. This is an important factor for anybody entering into the cryptocurrency industry since knowing whether you’re dealing with centralized or decentralized activity might affect how you communicate with the network.
DigiFinex has been in operation for more than 6 years, which is a significant amount of time for a cryptocurrency exchange firm to establish itself in the market. The exchange lists over 700 coins and tokens, with daily trading volumes of several billion USD, which is actually a huge number. That’s nothing to criticize.
Pros
- Wide range of trading options
- Wealth management tools
- Audited Proof of Reserves
- Dedicated crypto card
- Cloud mining capabilities
Cons
- No USA support
- Relatively high fees
DigiFinex Review: Advantages
We have just finished the discussion “What is DigiFinex?”. Now, let’s examine its advantages in this review. These tend to give a positive impression of the platform, and they may be a great method to learn more about any business or service you have never used before.
Diversity of Trading Options
One of the outstanding advantages of DigiFinex exchange is the extensive selection of trading options. To begin with, it offers spot trading, a service that many investors ignore despite being commonplace on most exchanges. In addition, the DigiFinex exchange provides margin and ETF trading. The interfaces of all three of these choices are almost similar, which is beneficial for people who might be used to one but are interested in trying the others.
Users can set time parameters even to minute-by-minute variations due to its highly customizable charts. This is perfect for day traders who need to monitor market changes in detail. Furthermore, a multiple of indicators may be selected and added for increased accuracy. Although they might not be important to novice traders, these can be extremely helpful to experienced traders. Additionally, the TradingView connection is available if you need any additional customization.
The DigiFinex exchange also offers perpetual tools, such as USDT margined and coin margined activities, if spot, margin, and ETFs aren’t what you’re into. While the interface on them is a little different, it is still quite helpful and informative.
Besides, the copy trading community is directly incorporated within the platform, which is ideal for those who might be looking for something more sociable and less interactive. Users have the option to sync their investing activities with other people or bots that have a track record of success or to share their own market movements and let others learn from them.
You may use DigiFinex to filter individuals based on their winning rate during the last 3 weeks or 7 days. User profiles also show the assets they frequently trade with and the amount of deals they’ve completed over a certain period.
Tools for Wealth Management
This DigiFinex review is noteworthy since the firm provides a variety of wealth management products. These are often guidelines and dashboards that assist consumers in evaluating their financial situation in the market, allowing them to make safer and better decisions. In addition, they may provide techniques for increasing users’ funds in a less dangerous setting compared to direct trading.
Since the firm offers its user base crypto loans in addition to savings accounts as financial plans, my DigiFinex exchange review concentrates more on the second category. It provides a 10% APR for USDT and 5% for BTC and ETH on its savings-style accounts. Besides, it offers fixed-term and fixed-rate investment plans that are intended to produce steady profits.
Additionally, it provides advanced plans managed by specialized asset management team members. These programs provide more incentives, with the possibility of reaching 50% APR; nevertheless, there is a significant caveat. There are dangers involved with bigger potential benefits. Put differently, these kinds of plans are not for the timid, and even if they are managed by highly skilled people, there are still potential financial risks.
This DigiFinex exchange review highlights the availability of large-scale crypto loans with daily interest rates as low as 0.02%. Generally, not all loans will have low interest rates, but this percentage is achievable with the appropriate setups. Furthermore, there aren’t any additional fees connected to these loans.
Loans can be granted very rapidly as long as you’ve registered on the website and completed all required KYC and AML verification procedures. They enable people who might have difficulties with finances to maintain their stability in challenging times, which is why they are regarded as a kind of wealth management tool.
There are 7 to 60 days available for loan terms. This indicates that their length is accepted as short-to-mid-term. As a result, they are excellent for anyone who needs a small amount of money quickly to get by during a difficult time or to acquire a larger trading position.
Audited Proof of Reserves
In addressing questions such as “Is DigiFinex safe?” it’s important to consider how transparent and reliable the platform’s operations are. Transparency is more needed and wanted than ever in the post-FTX era of the crypto world. People are usually less trusting of financial transactions than they were. In order to repair the relationship between the customer and the business, it is important to be as open and truthful as possible.
This is why I highlight in my DigiFinex exchange review that the business releases and updates its proof of reserve data regularly, where a platform proves that it has sufficient reserves to cover the balances of its users. The concept formed from worries regarding the solvency of cryptocurrency exchanges and other platforms that hold consumers’ digital assets.
An exchange or platform can demonstrate to its users that they have sufficient assets to meet all of their obligations by conducting a Proof of Reserves audit. This can be an important part of building platform confidence, particularly in light of the industry’s history of incidents and bankruptcies such as the Mt. Gox and FTX events.
DigiFinex guarantees that the platform will keep all of its users’ combined assets at least 1:1. This indicates that the firm promises to keep its own reserves (balance of funds) at least as high as or even higher than the total worth of all the assets that customers possess on the platform.
This is especially important in the field of cryptocurrencies because certain cryptocurrency platforms run on fractional reserves, which means they do not have enough resources available to cover the whole amount of all client deposits. When a large number of their users want to withdraw money at once, the platform may take the risk seriously since they don’t have the ability to fulfill demand.
However, it’s evident from my DigiFinex review that this business would not experience such negative actions. At this time, its reserves collateral rate for BTC and ETH is 101%, while its reserves for USDT are 102%. It is encouraging that all of these exceed 100% since it indicates that large withdrawals wouldn’t disrupt their operation as they would still have some money in their funds left over.
Presently, DigiFinex manages their proof of reserves in-house, which means that they are actively monitoring their own money. Usually, this would cause some individuals to consider asking themselves, “Is DigiFinex safe?” Nevertheless, the business is very open about its efforts to get a third-party auditor to verify its data and make sure the figures are accurate and legitimate.
DigiFinex Card
These USDT-denominated cards are powered by VISA and provide high limits. By connecting their card to their DigiFinex accounts, these cards allow traders to utilize their cryptocurrency in both online and offline stores that only accept fiat money. This card will convert the cryptocurrencies into fiat while transacting.
As the end user, you do not have to manually execute the conversion because this procedure is automated. This card has an extremely high transaction cap and there is no spending limit. The card presently only accepts USDT, however, support for additional assets is planned for the future.
These cards are revolutionary because they encourage the use of cryptocurrency for other purposes besides trading and investing. By facilitating real-life buying and spending, they correspond to the regular usage behaviors of credit and debit cards.
When using the card, there are no yearly or transaction fees but there are costs associated with both issuance and top-up. Nevertheless, the issuance charge is returned to your DigiFinex account if the total amount you top up exceeds $10,000. This is great for seasoned traders who deal with significant amounts of money since it shows that the platform wants to reimburse users and doesn’t unnecessarily charge its customers for money.
Cloud Mining
DigiFinex provides cloud mining tools, making it a key part of this review. This means the platform enables mining without requiring its users to possess any hardware at all. Customers just need to provide remote power via their own resources or actions, the firm will take care of the technological aspects. They don’t have to handle any of the procedure’s complexities.
Some organizations let you participate in cloud mining by interacting with the platform, making deposits, or trading on it. A similar function is provided by the DigiFinex exchange, but customers have greater control over the process because they may select their preferred hashrate and deposit money for electricity costs. Although that sounds difficult, all you actually have to do is send the exchange a specific amount of money then they will take care of the rest.
Some may wonder, “Is DigiFinex safe when it comes to mining?” due to this. It makes sense to inquire about this given that they are providing a highly custodial service, requiring you to have a great deal of trust in the business to make all the right choices. Yet, you will feel comfortable as you have more control over it and have some autonomy that you can choose how much of your investment goes into the mining process.
Additionally, DigiFinex offers merged mining. Users can mine cryptocurrency by collaborating across multiple blockchains. This kind of cloud mining is basically one where the complexity is handled by someone else. Even as these services become more and more popular, it is difficult to find a platform that combines an easy-to-use interface with mining capabilities for various blockchains.
At this time, their hashrate market offered two merged mining options. A contract price of 37 USDT was assigned to one, while 3500 USDT to another. These two prices are good choices since they provide reasonable entry points for both wealthy consumers and beginners who simply want to experiment with the service.
DigiFinex Review: Drawbacks
Naturally, a review of DigiFinex would not be comprehensive or appropriate if it did not critically examine its drawbacks and shortcomings. These are factors that may not be desired, but they are nevertheless important to consider before traders start using it.
No DigiFinex USA Support
Regretfully, DigiFinex USA isn’t available at present. This implies that US users are unable to interact with the platform or use any of its services. Even though the business is active across the world, it seems that there is one area they haven’t yet expanded into.
Of course, hearing this frustrates me because the US has a steadily increasing digital currency user base. There are bound to be those dissatisfied by this discovery given the variety of capabilities and tools it provides. However, DigiFinex still accepts USD deposits and USDT. Although this may sound misleading, even for businesses that do not operate in the US, this is a standard procedure.
The reason is that the US dollar is often regarded as the global standard for fiat currencies. As America is a superpower and many countries outside of the States works with USD, it makes sense to build an infrastructure that can support it.
Although it is difficult to determine for sure from this DigiFinex review why they have chosen to exclude US users, firms frequently express concern over the nation’s complex cryptocurrency laws and regulations. There may be a sense of uneasiness and discomfort for smaller businesses when even publicly traded organizations, like Coinbase, have to face criticism from the US Securities and Exchange Commission.
Relatively High Fees
When compared to some of their rivals, this company’s spot fees are relatively high. For spot trading, the maker fees are 0.15% and the taker fees are 0.2% for typical users (whose trading volume is less than 100,000 USDT). This might be disappointing in comparison to Binance, whose maker and taker costs for spot traders are fixed at 0.1%.
DigiFinex charges 0.1% of makers and 0.2% of takers for margin trading. The margin fees on Binance are 0.1% for both makers and takers, which is a little better for DigiFinex but still quite expensive for takers. Although their pricing may seem competitive, the firm needs to demonstrate its superiority over other high-tier platforms in the industry, especially given that they are not widely known.
Any underdog exchange, which is practically all of the platforms that are still establishing themselves, ought to be putting a lot of effort into persuading cryptocurrency enthusiasts to choose them over their more established competitors. No matter how many features and tools you offer, some traders won’t care if you can’t give them a good enough transaction. Stated differently, this is likely to discourage some people.
Card Limitations
As stated above, the dedicated card is one of the most sought-after features of the DigiFinex exchange. This card has a lot of advantages but it also has some drawbacks. Even if it was referred to as a “credit card” on its previous home page, you will discover that this is not really exact when you go through its FAQs section.
DigiFinex said that “since [a] credit score system is not yet available in the crypto ecosystem, your ‘credit score’ with us is the value of USDT you top up. Nonetheless, features such as pre-authorization for travel reservations, payment integrations with Google Pay are still available and convenient, just like a traditional credit card.” Although there is nothing fundamentally wrong with a card having these restrictions on it,, it is troublesome that they would call it a credit card at the top of their landing page.
Although it functions similarly to a credit card, some users may anticipate a more traditional credit utility. In actuality, it functions more like a prepaid or debit card.
The difference may not matter to many people, but it creates some significant limitations that will undoubtedly annoy certain users. The same consumer protection regulations that apply to credit cards do not apply to purchases made on this card, nor may you use it to raise your credit score.
How to Sign Up to DigiFinex?
Let’s examine the sign-up procedure to finish up our evaluation of DigiFinex. Although this is a very simple procedure, keep in mind that with no DigiFinex USA support, this step will not be relevant for traders within that country. Looking for alternate exchange platforms is your greatest option if you belong to this group.
- Step 1: Visit the DigiFinex homepage. At the top right corner off the screen, click the “Sign Up” button.
- Step 2: Enter your phone number or email address to register on a new page that appears. I’ll be using my email address for this example.
- Step 3: A verification puzzle will show up after you enter your email. Once complete it, you will receive an email with a numerical code that has to be entered.
- Step 4: Enter this code. Next, select “Activate Account” at the bottom of the page.
The creation of your account has now finished. Please note that this does not imply that you have been confirmed completely. You will be required identification, proof of residency, and the ability to pass a liveness check, which usually includes a camera test to confirm your identity, in order to participate in the verification process.
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